Merkel industries has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, Large and Small, about which it has provided the following data:

	Large	Small
Direct materials per unit	$17.80	$55.40
Direct labor per unit	$16.10	$55.20
Direct labor- hours per unit	0.70	2.40
Annual production	30,000	15,000

The company's estimated total manufacturing overhead for the year is $1,793,790 and the company's estimated total direct labor-hours for the year is 57,000.

The company is considering using a varition of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:

Activities and Activity Measures	Estimated Overhead Cost
Supporting direct labor (DLHs)	$285,000
Setting up machines (setups)	437,190
Parts administration (part types)	1,071,600
Total	$1,793,790

Activities	Large	Small	Total
Supporting direct labor	21,000	36,000	57,000
Setting up machines	798	2,565	3,363
Parts administration	1,539	1,140	2,679

Required:

a. Determine the unit product cost of each of the company's two products under the traditional costing system.

b. Determine the unit product cost of each of the company's two products under the activity-based costing system.